XML 40 R17.htm IDEA: XBRL DOCUMENT v2.4.0.8
Income Taxes
3 Months Ended
Mar. 31, 2014
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The tax provision for federal income taxes was $1.8 million for the first quarter of 2014, compared to $1.4 million for the same period in 2013. The effective tax rate was 27% and 28% for the quarters ended March 31, 2014 and March 31, 2013, respectively.

At March 31, 2014, the Company had a net deferred tax asset of $12.5 million. An analysis was conducted to determine if a valuation allowance against its deferred tax assets was required. The Company used current forecasts of future expected income, possible tax planning strategies, current and future economic and business conditions (such as the possibility of a decrease in real estate value for properties the Bank holds as collateral on loans), the probability that taxable income will continue to be generated in future periods and the cumulative losses recorded in previous years to make the assessment. Management concluded that a valuation allowance was not necessary at March 31, 2014.